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ACC 440 Week 5 Learning Team Assignment Ch. 6 and Ch. 10 Exercise E6-11 ,E10-5, E10-6
Download answer at http://www.examtutorials.com/course/acc-440-week-5-learning-team-assignment-ch-6-and-ch-10-exercise-e6-11-e10-5-e10-6/
<div><b>E6-11</b><b>Upstream Sale of Equipment in Prior Period</b>Baywatch Industries has owned 80 percent of Tubberware Corporation for many years. On January 1, 20X6, Baywatch paid Tubberware $270,000 to acquire equipment that Tubberware had purchased on January 1, 20X3, for $300,000. The equipment is expected to have no scrap value and is depreciated over a 15-year useful life.Baywatch reported operating earnings of $100,000 for 20X8 and paid dividends of $40,000. Tubberware reported net income of $40,000 and paid dividends of $20,000 in 20X8.<b>E10-5</b><b>Preparation of Statement of Cash Flows</b>The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity.Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following items are proposed for inclusion in the consolidated cash flow statement:Decrease in accounts receivable $ 23,000Increase in accounts payable 5,000Increase in inventory 15,000Increase in bonds payable 120,000Equipment purchased 380,000Common stock repurchased 35,000Depreciation reported for current period 73,000Gain recorded on sale of equipment 8,000Book value of equipment sold 37,000Goodwill impairment loss 3,000Sales 900,000Cost of goods sold 368,000Dividends paid by parent 60,000Dividends paid by subsidiary 30,000Consolidated net income for the year 464,000Income assigned to the noncontrolling interest 14,000<b><i>Required</i></b>Prepare in good form a statement of cash flows for Consolidated Enterprises Inc. using the indirect method of computing cash flows from operations.<b>E10-6</b><b>Direct Method Cash Flow Statement</b>Using the data presented in E10-5, prepare a statement of cash flows for Consolidated EnterprisesInc. using the direct method of computing cash flows from operating activities.</div>
http://www.examtutorials.com/course/acc-440-week-5-learning-team-assignment-ch-6-and-ch-10-exercise-e6-11-e10-5-e10-6/Download answer at https://www.examtutorials.com/course/acc-440-week-5-learning-team-assignment-ch-6-and-ch-10-exercise-e6-11-e10-5-e10-6/
<div><b>E6-11</b><b>Upstream Sale of Equipment in Prior Period</b>Baywatch Industries has owned 80 percent of Tubberware Corporation for many years. On January 1, 20X6, Baywatch paid Tubberware $270,000 to acquire equipment that Tubberware had purchased on January 1, 20X3, for $300,000. The equipment is expected to have no scrap value and is depreciated over a 15-year useful life.Baywatch reported operating earnings of $100,000 for 20X8 and paid dividends of $40,000. Tubberware reported net income of $40,000 and paid dividends of $20,000 in 20X8.<b>E10-5</b><b>Preparation of Statement of Cash Flows</b>The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity.Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following items are proposed for inclusion in the consolidated cash flow statement:Decrease in accounts receivable $ 23,000Increase in accounts payable 5,000Increase in inventory 15,000Increase in bonds payable 120,000Equipment purchased 380,000Common stock repurchased 35,000Depreciation reported for current period 73,000Gain recorded on sale of equipment 8,000Book value of equipment sold 37,000Goodwill impairment loss 3,000Sales 900,000Cost of goods sold 368,000Dividends paid by parent 60,000Dividends paid by subsidiary 30,000Consolidated net income for the year 464,000Income assigned to the noncontrolling interest 14,000<b><i>Required</i></b>Prepare in good form a statement of cash flows for Consolidated Enterprises Inc. using the indirect method of computing cash flows from operations.<b>E10-6</b><b>Direct Method Cash Flow Statement</b>Using the data presented in E10-5, prepare a statement of cash flows for Consolidated EnterprisesInc. using the direct method of computing cash flows from operating activities.</div>
https://www.examtutorials.com/course/acc-440-week-5-learning-team-assignment-ch-6-and-ch-10-exercise-e6-11-e10-5-e10-6/
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